The central bank's attempts to steady the ship at BASIC Bank have been met with a huge setback after the troubled lender failed to meet the majority of the targets laid out in an agreement signed last July.

A high official of the central bank said the state-owned bank's reckless lending continued even after the signing of the agreement, which was drafted in after massive irregularities were unearthed.

The agreement obliged BASIC Bank to limit its single borrower exposure to 15 percent of the bank's total capital, but it overshot the ceiling for 61 of its clients, giving out Tk 2,111 crore more in loans than it should.

Bangladesh Bank stipulated that the state-owned scheduled bank raises its capital adequacy ratio (CAR) to 11 percent by the end of 2013. The CAR on December 31 last year stood at 4.5 percent.

It was also supposed to make up the capital shortfall of Tk 128.21 crore in 2013, but in reality, the capital deficit widened to Tk 647.38 crore by the end of December.

The state-owned scheduled bank also fell short in cash recovery last year: it was supposed to be a minimum of Tk 212 crore but BASIC Bank managed Tk 142.82 crore.

The troubled bank's non-performing loan ratio by the end of 2013 needed to be 5 percent, but it stood at 11.72 percent.

Another target was to transform the loss-making branches into profitable ones during the course of the year, which, again, it failed to. Of the total of 68 branches, 33 remain loss-making.

Bangladesh Bank also put a ceiling on BASIC Bank's loan growth in 2013: it was first set at 10 percent and later upon the bank's request it was extended to 20.63 percent.

Even then the state-owned scheduled bank fell short: its loan growth on December 31 last year stood at 25.26 percent.

Subsequently, the central bank as per the Bank Company Act 1991 enforced a penalty of Tk 10.02 crore.

BASIC Bank, however, maintains that its loan growth in 2013 stood at 18.5 percent, and has appealed for the withdrawal of the fine.

 RAJSHAHI: All the existing potential sectors and sub- sectors of agriculture should be brought under qualitative and quantitative investments for making the region’s agro-based economy more vibrant.

Services of Rajshahi Krishi Unnayan Bank (RAKUB) should be taken to the doorsteps of the farmers for elevating their living and livelihood condition, a RAKUB press release here said.

Members of the Board of Directors of the bank in its 408th meeting held at its board room on Thursday made these observations.

With Board Chairman Prof Dr Shah Newaz Ali in the chair, board members Mofazzal Hossain, Saifuddin Ahmed, Helaluddin Ahmed, Nurul Amin, Prof Modan Mohan Dey and Prof Obaidur Rahman Pramanik were present at the meeting.

For the sake of sustainable livelihood of the farmers and for bolstering the agro-based economy, the meeting called for increasing the need-based credit flow.

News:Daily Sun/22-Mar-2014

Bank Asia provided higher studies scholarship to 21 (twenty-one) insolvent meritorious students of Mohadevpur Upazila in Naogaon recently.

A.M. Nurul Islam, Vice Chairman of the Bank handed over the scholarship money to the students at a function held at Mohadevpur Upazila auditorium, said a press release.

Barun Kanti Saha, SEVP, Mozaffor Ahmed, SVP & Head of Bogra Branch, Ekram Hossain, FAVP & Head of Mohadevpur Branch of the bank and Abdus Sattar Nannu, newly elected Upazila Chairman among others were present on the occasion.

News:Daily Sun/22-Mar-2014

NRB Global Bank Limited opened its Patherhat Branch at Patherhat in Chittagong on Thursday.

Nizam Chowdhury, Chairman of the bank inaugurated the branch as chief guest, said a press release.

Md Hanif Chowdhury, Vice Chairman, Md Fazlay Morshed, Morshedul Alam, Md Yousuf, Md Shahjahan Meah, Kamal Pasha, Morshedul Alam, Directors, Md. Abdul Quddus, Managing Director of the bank, branch manager and clients were present.

                                                                                                            News:Daily Sun/22-Mar-2014

Mutual Trust Bank Limited recently signed a Remittance Drawing Arrangement with UAE Exchange Malaysia SDN BHD of Malaysia, at a function at the bank’s corporate head office in Dhaka.

Md. Ahsan-uz Zaman, Additional Managing Director of MTB and Santosh Nair, CEO and Country Head of UAE Exchange Malaysia, signed the agreement on behalf of their respective organizations, said a press release.

Md. Bakhteyer Hossain, Executive Vice President and Head of NRB Division of MTB, Engr. Md. Badlur Rahman Khan, Director of UAE Exchange Malaysia and other senior officials of both the organizations also attended the programme.

News:Daily Sun/22-Mar-2014